Lookers shares dive as suspected fraud delays financial results
Shares in car dealership chain Lookers plunged this morning after the firm announced suspected fraud had delayed the publication of its financial results.
Lookers’ share price dropped more than 18 per cent after it revealed last night that it had “identified potentially fraudulent transactions”.
Lookers, which was scheduled to publish its 2019 results this morning, said it has hired an external advisor to probe the suspicious transactions in one of its operating divisions.
Lookers said it will postpone the announcement of its results until the second half of next month.
The firm said: “In the final stages of preparing its results for the financial year ended 31 December 2019, the Company has identified potentially fraudulent transactions in one of its operating divisions.
“As a result the Board has decided to postpone the announcement of its results until the second half of April.
“Whilst the initial findings are not material in the context of the group, the board is appointing an external adviser to lead a full investigation into the matter”.
Last month Lookers announced a shake up of its senior leadership team, appointing Mark Raban and Cameron Wade as the firm’s chief executive and chief operating officer.
In November, Andy Bruce and Nigel McMinn stepped down after the firm issued a profit warning.
In the company’s latest trading update it said group sales of new vehicles declined 6.6 per cent in the fourth quarter of 2019.
The Financial Conduct Authority is also investigating Lookers’ sales process, with an initial planning and fact finding phase ongoing.